| OTHER COMPREHENSIVE INCOME The components of Huntington’s OCI for the three-month and six-month periods ended June 30, 2021 and 2020, were as follows:
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Three Months Ended
June 30, 2021 |
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Tax (expense) |
| (dollar amounts in millions) |
Pretax |
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Benefit |
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After-tax |
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| Unrealized gains on available-for-sale securities arising during the period |
$ |
88 |
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$ |
(20) |
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$ |
68 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
13 |
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(3) |
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10 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
101 |
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(23) |
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78 |
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| Net change in fair value on cash flow hedges |
(48) |
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9 |
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(39) |
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| Translation adjustments, net of hedges (1) |
(6) |
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— |
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(6) |
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| Net change in pension and other post-retirement obligations |
3 |
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1 |
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4 |
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| Total other comprehensive income |
$ |
50 |
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$ |
(13) |
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$ |
37 |
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Three Months Ended
June 30, 2020 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
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Benefit |
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After-tax |
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| Unrealized gains on available-for-sale securities arising during the period |
$ |
57 |
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$ |
(13) |
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$ |
44 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
23 |
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(5) |
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18 |
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| Net change in unrealized gains (losses) on available-for-sale securities |
80 |
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(18) |
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62 |
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| Net change in fair value on cash flow hedges |
14 |
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(3) |
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11 |
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| Net change in pension and other post-retirement obligations |
(12) |
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2 |
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(10) |
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| Total other comprehensive income |
$ |
82 |
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$ |
(19) |
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$ |
63 |
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Six Months Ended
June 30, 2021 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
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Benefit |
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After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
(199) |
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$ |
44 |
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$ |
(155) |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
22 |
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(5) |
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17 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
(177) |
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39 |
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(138) |
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| Net change in fair value on cash flow hedges |
(92) |
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19 |
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(73) |
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| Translation adjustments, net of hedges (1) |
(6) |
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— |
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(6) |
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| Net change in pension and other post-retirement obligations |
6 |
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— |
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6 |
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| Total other comprehensive loss |
$ |
(269) |
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$ |
58 |
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$ |
(211) |
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Six Months Ended
June 30, 2020 |
|
Tax (expense) |
| (dollar amounts in millions) |
Pretax |
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Benefit |
|
After-tax |
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| Unrealized gains (losses) on available-for-sale securities arising during the period |
$ |
274 |
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$ |
(61) |
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$ |
213 |
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| Less: Reclassification adjustment for realized net losses (gains) included in net income |
28 |
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(6) |
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22 |
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| Net change in unrealized holding gains (losses) on available-for-sale securities |
302 |
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(67) |
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235 |
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| Net change in fair value on cash flow hedges |
409 |
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(90) |
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319 |
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| Net change in pension and other post-retirement obligations |
(10) |
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2 |
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(8) |
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| Total other comprehensive income |
$ |
701 |
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$ |
(155) |
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$ |
546 |
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(1)Foreign investments are deemed to be permanent in nature and, therefore, Huntington does not provide for taxes on foreign currency translation adjustments.
Activity in accumulated OCI for the three-month and six-month periods ended June 30, 2021 and 2020, were as follows:
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| (dollar amounts in millions) |
Unrealized
gains (losses) on
debt securities (1)
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Change in fair value related to cash flow hedges |
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Translation adjustments, net of hedges |
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Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Three Months Ended June 30, 2021 |
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| Balance, beginning of period |
$ |
(28) |
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$ |
223 |
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$ |
— |
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$ |
(251) |
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$ |
(56) |
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| Other comprehensive income (loss) before reclassifications |
68 |
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(39) |
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(6) |
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— |
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23 |
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| Amounts reclassified from accumulated OCI to earnings |
10 |
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— |
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— |
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4 |
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14 |
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| Period change |
78 |
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(39) |
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(6) |
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4 |
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37 |
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| Balance, end of period |
$ |
50 |
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$ |
184 |
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$ |
(6) |
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$ |
(247) |
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$ |
(19) |
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| Three Months Ended June 30, 2020 |
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| Balance, beginning of period |
$ |
145 |
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$ |
331 |
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$ |
— |
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$ |
(249) |
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$ |
227 |
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| Other comprehensive income before reclassifications |
44 |
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|
11 |
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— |
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— |
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|
55 |
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| Amounts reclassified from accumulated OCI to earnings |
18 |
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— |
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— |
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(10) |
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|
8 |
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| Period change |
62 |
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|
11 |
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— |
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(10) |
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63 |
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| Balance, end of period |
$ |
207 |
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$ |
342 |
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$ |
— |
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$ |
(259) |
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$ |
290 |
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| (dollar amounts in millions) |
Unrealized
gains (losses) on
debt securities (1)
|
|
Change in fair value related to cash flow hedges |
|
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|
|
Translation adjustments, net of hedges |
|
Unrealized
gains
(losses) for
pension and
other post-
retirement
obligations (2)
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Total |
| Six Months Ended June 30, 2021 |
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| Balance, beginning of period |
$ |
188 |
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$ |
257 |
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$ |
— |
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$ |
(253) |
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$ |
192 |
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| Other comprehensive loss before reclassifications |
(155) |
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(73) |
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(6) |
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— |
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|
(234) |
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| Amounts reclassified from accumulated OCI to earnings |
17 |
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— |
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— |
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|
6 |
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|
23 |
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| Period change |
(138) |
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|
(73) |
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(6) |
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6 |
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(211) |
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| Balance, end of period |
$ |
50 |
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$ |
184 |
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$ |
(6) |
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$ |
(247) |
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$ |
(19) |
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| Six Months Ended June 30, 2020 |
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| Balance, beginning of period |
$ |
(28) |
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$ |
23 |
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|
$ |
— |
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$ |
(251) |
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$ |
(256) |
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| Other comprehensive income before reclassifications |
213 |
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|
319 |
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|
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|
|
— |
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|
— |
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|
532 |
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| Amounts reclassified from accumulated OCI to earnings |
22 |
|
|
— |
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|
|
|
|
|
— |
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|
(8) |
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|
14 |
|
| Period change |
235 |
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|
319 |
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|
— |
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|
(8) |
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|
546 |
|
| Balance, end of period |
$ |
207 |
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$ |
342 |
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|
$ |
— |
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|
$ |
(259) |
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$ |
290 |
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(1)AOCI amounts at June 30, 2021 and June 30, 2020 include $48 million and $81 million, respectively, net of unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized losses will be recognized in earnings over the remaining life of the security using the effective interest method.
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